UPI Energy Watch

Syria, Iran to boost electric cooperation

Syrian and Iranian officials met Thursday to hold talks on boosting electric energy cooperation, Sana reported.

Syrian Electricity Minister Ahmad Khaled al-Ali met with Iranian Energy Minister Fattah Pervez to discuss ways to strengthen the existing cooperation, particularly in the field of electric power.

The two sides reviewed the memorandum of understanding for joint cooperation in the field of electrical energy between the two ministries, which was inked during the 10th session of the Syrian-Iranian Joint Committee meetings.

The memo included many important points regarding the subject of linking the Syrian-Iranian electricity networks and taking the necessary measures to accelerate and complete this project as quickly as possible.

The memo provided for following up the cooperation relations between the two countries in the area of training and exchange of information and engineering experiences.

The two sides emphasized pursuing the understanding memoranda in the fields of preparing the economic feasibility regarding setting up a joint factory to produce cement columns and the establishment of a joint factory for the production of switches.

The Syrian and Iranian sides expressed hope in the implementation of and accelerating the joint cooperation between the two sides to raise the level of cooperation in electricity domain to serve interests of the two friendly countries and development of the deep-rooted relations and ties.

Spain accepts EU ruling on German energy takeover bid

Spain said it accepts the ruling issued by the EU Court of Justice condemning Madrid for not withdrawing several of the conditions on the attempt to takeover Endesa by Germany's E.ON, but said the judicial decision "does not limit its ability to act in future to guarantee its energy supply."

Efe reported that the ruling does not go into an analysis of the arguments justifying the conditions imposed on E.ON or the legislation on which they are based, and confines itself to judging the government's action in the EU sphere.

In 2006 a law was approved extending the powers of the National Energy Commission (CNE), and the requirements imposed on E.ON were based on it.

The government recalls that the European rules recognize the ability of member states to intervene with the aim of guaranteeing the security of energy supplies.

Economy Minister Pedro Solbes said he regretted the contradictions within the EU rules on this point, because they allow countries to cite reasons of national strategy to set conditions on a transaction in the energy sector while not accepting it in practice.

Gazprom increases gas exports 26 percent in January

Gazprom increased gas exports 26 percent year-on-year in January 2008 to 22.49 billion cubic meters, the Russian Industry and Energy Ministry said.

The Russian Economic Development and Trade Ministry published the Industry and Energy Ministry's gas export data two days ago; however, in today's statement the Industry and Energy Ministry quoted figures from the Federal Customs Service.

Gas exports were not only higher than in the unusually mild January 2007 but also higher than the unusually cold January of 2006 (20.9 bcm).

Exports to non-CIS countries grew 34.4 percent to 17.45 bcm and exports to the CIS grew 3.3 percent to 5.04 bcm.

Gas production rose 0.8 percent to 61.19 bcm. Gazprom itself increased production 0.2 percent to 51.62 bcm, which was 84.4 percent of overall gas produced in Russia in January 2008, down from 84.9 percent in January 2007.

Gazprom supplied some 49.7 bcm of its own gas to domestic consumers using its Unified Gas Supply System in January 2008, up 12.6 percent year-on-year. This included 18.2 bcm to RAO UES, up 9.2 percent.

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Closing oil prices, Mar. 7, 3 p.m. London

Brent crude oil: $102.69

West Texas Intermediate crude oil: $105.30

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(e-mail: energy@upi.com)